Computer software is a general term used to describe a collection of computer programs, procedures and documentation that perform some tasks on a computer system. Software is considered personal property and may be assigned.
Utah Assignment of Software
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What's taxable in Utah? Services include professional services provided by lawyers, architects, landscapers, etc. ... Tangible products, as you might guess, are physical items. ... The threshold in Utah is $100,000 in annual sales or 200 separate sales transactions, whichever your business reaches first.
In conclusion, there are several items and services that are not subject to sales tax in Utah, including food, prescription medications, medical devices, clothing, nonprofit organization purchases, and most services.
Utah taxes SaaS and a wide variety of digital products and services; however, the state has a limited exemption providing that streaming video is not taxable.
Custom software is not tangible personal property. Sales, rentals, leases and charges for using custom software are nontaxable. Charges to maintain, support or upgrade custom software are also nontaxable.
Sales tax applies to the retail sales of hardware, miscellaneous supplies, repair parts, and pre-written and sub-licensed software. Sales tax also applies if the client is required to purchase a maintenance contract or the hotline support service.
